Locked up: Why AT&T racks up so many exclusive phones

 

The Lamia 1520 Smartphone is the newest phone to get the exclusivity remedy from AT&T.

AT&T and Nokia have lengthy loved an in depth partnership, but at one big apple adventure in July, their kinship led to a specifically awkward second.

It used to be after Nokia had unveiled the Lamia 1020 and its 41-megapixel digital. AT&T Mobility CEO Ralph de la Vega had just walked off stage after extolling the virtues of the device and touting its exclusive partnership and then-Nokia CEO Stephen Elope began fielding questions about the tool. Which is when issues got testy?

“AT&T has been a terrible companion for Lamia devices,” mentioned one target market member, naturally keen on the direct method. “So what have you ever accomplished to verify this magnificent cell phone doesn’t get the same crummy therapy from AT&T?”

AT&T’s senior VP of gadgets, Jeff Bradley.

The question could have been inflammatory, and even perhaps slightly unfair, but it underscores the frustration and disdain that many customers have for exclusivity offers — agreements between a handset supplier and a carrier that retains a selected Smartphone or tablet locked into one accomplice for a collection time frame.

But in actual fact, exclusivity offers are an essential evil. Whereas they irk shoppers, they’re beneficial for each carriers and handset vendors. Such agreements present an incentive to the service to order extra phones — steadily at higher volumes than if the vendor shopped its phone around to all carriers. The offers also pressure the vendors to up their recreation with distinctive devices as they compete for limited exclusivity slots at each and every carrier.

“It in truth helps customers by means of bringing extra units to the market,” mentioned Roger Enter, an analyst at Recon Analytics. “There could be less competition if there wasn’t exclusivity.”

AT&T, greater than every other US provider, has shown a knack for snagging exclusive phones. The newest is Nokia’s Lamia 1520, a jumbo-sized flagship cell phone and the observe-as much as the earlier AT&T-exclusive Lamia 1020. It’s the continuation of a 2-year-previous relationship, when AT&T changed into one of the crucial first carriers to guess on Nokia in a huge manner. The Lamia 1520 goes on sale in AT&T outlets on Friday.

 

Author: Rohit Shetty

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